The first phase of implementation, which includes a return to annual reporting, took effect from 1 January 2019. The second phase, scheduled to commence from 1 April 2019, aims to improve the standard of reporting, particularly for larger, high-risk licensees.
While the details of the changes are still evolving, we have begun the process of clarifying what these changes mean for licencees.
QBCC will soon be contacting all licensees to explain what your obligations are and provide some guidance on the information they expect to receive.
QBCC is also intending to run a series of roadshows in February to explain the changes in more detail.
For Licensees in financial categories SC1 to category 3 (maximum revenue up to $30,000,000), there is no immediate impact. You will be required to provide financial information to QBCC before 31 December 2019.
For Licensees in financial category 4 and above (maximum revenue exceeds $30,000,000) you will need to provide financial information to QBCC by31 March 2019. The information required for these licensees is more detailed, as QBCC is aiming to prevent high profile insolvencies and corporate collapses.
The QBCC has advised that licensees will NOT be required to lodge a new MFR report every year providing you continue to meet your Minimum Financial Requirements. However, QBCC will require you to provide some additional financial information each year. We are still waiting for information on exactly what is required, and what level of accountants’ certification will be required.
MFRs will be required for new licensees. It will also be required when there is a change in details (e.g. increase in Maximum Revenue, a sudden drop in Net Tangible Assets, or to assist with a QBCC investigation).
Keep an eye out for the letter from QBCC regarding the changes. Once you receive it, send a copy of the letter to your accountant.
Attend the QBCC Roadshows. Dates should be announced soon on the QBCC website.
Licensees in Category 4 and above shoshould ensure that their 2018 financial statements have been prepared and are for submission to QBCC before 31 March 2019.
Profit and loss statement, balance sheet, debtors and creditors reports and cashflow statements should all be included in this submission.
If you already provide copies of your annual ASX or ASIC reports to the QBCC, you do not need to provide a separate report
Your Bentleys team is liaising with the QBCC and relevant professional bodies to gather more information about how these changes will impact you and your business. We will continue to keep our Bentleys clients and community up to date of any important considerations as information comes to hand. If you have any concerns or questions in the interim – please contact us.